What Will Alibaba Mean in Microsoft's Yahoo Takeover?

Kachina Shaw

China may or may not have surpassed the United States in the number of citizens online this year. It all depends, of course, as The Wall Street Journal's Carl Bialik explains, on how you count them, and how you counted them last year. Or whether the U.S. government has bothered to make any kind of count in the last five years (it hasn't).


In the end, it matters little. Either it has taken first place, or it will, and it'll say it has either way.


In the short term, however, the user numbers that governmental agencies choose to accept could play a large part in the ongoing drama of Microsoft's attempt to take over Yahoo.


Because of Yahoo's 40 percent stake in Chinese e-commerce and search site Alibaba.com, reports The New York Times, a Chinese law that will go into effect on August 1, 2008, could bring as much scrutiny to the proposed deal from that country as from regulatory bodies in the U.S. and Europe. The Times adds that the regulatory body could also investigate national security issues, a facet that might be even more likely after Chinese Huawei Technologies was prevented by the U.S. Committee on Foreign Investment from investing in 3Com on national security grounds.


At the same time, Alibaba executives are investigating the possibility of buying back Yahoo's stake in the company, which is allowed in the deal, using investments from a number of sources, many of them Chinese. And Yahoo CEO Jerry Yang, of course, last week emphasized the underestimated and unknown value and potential in the Alibaba holding in the investor presentation that's been making the rounds ahead of first-quarter reporting.


In light of both of these issues, ZDNet's Larry Dignan asks what Yahoo is worth to Microsoft without Alibaba. His answer: Well, we still don't know, but Microsoft sure as heck isn't going to up its bid from the $31 per share offered.

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Apr 1, 2008 9:37 AM Paul Torres Paul Torres  says:
It never ceases to amaze me on America's Corporate Culture for the "Quick Buck" and indifference or just simple "I Could Really Give a Damn What Happens Later" attitude!!!!America selling out to our mortal and economic enemies throughout the world.., just make the right financial offering and America's Morals and Conscience is "For Sale" TODAY/ Right Away".., just put the huge figures into the bank and "America's Corporate Soul" is yours!!!!Capitalism is one thing.., but Greed is a whole other story especially when it puts The United States and the People of this country at risk! As far as I am concerned this Crime is equal to someone walking into a school full of children and shooting all to @##$%!!!! In other words.., deserving of either "Death By Hanging", "Firing Squad", "Lethal Injection".., some form of "Death Penalty"!!!! I think that you all get the point on just how serious this matter is!!!! Why is it that we here in America are quick to want to put to death a "Convenience Store Robber" but the same does not go for someone whom steals "Millions" and or puts this country's "National Security" at risk or worst?!?What does this say about where this nation is at this critical time in our country's history?!?I pray that change for the better happens in this country...I do apologize for my very strong words but not the meaning behind what I am trying to communicate to you all out there in this great nation that we call "The United States of America"... "May God Bless America"! Reply

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